# Physical oil and futures align to tell story of a tighter market

> Physical crude markets and futures structure suggest a tighter oil market next year despite forecasts of a glut. Premiums for sweet crude are near record highs as IMO 2020 marine fuel rules take effect, and heavy grade premiums are rising due to Iran and Venezuela sanctions. Backwardation has narrowed somewhat.

- Date: 2019-11-22 · published 2019-11-22T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/56238-physical-oil-and-futures-align-to-tell-story-of-a-tighter-market
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Tighter physical crude supports energy costs that feed into diesel, freight and fertilizer pricing for feed producers. The outlook remains uncertain given expected non-OPEC supply growth.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲

## Sources

- hydrocarbonprocessing.com: https://www.hydrocarbonprocessing.com/news/2019/11/physical-oil-and-futures-align-to-tell-story-of-a-tighter-market/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.